SOURCE: Colorado Goldfields Inc.

Colorado Goldfields Inc.

December 03, 2009 08:00 ET

Colorado Goldfields Launches Series: "Milling Dynamics in the News" -- Relevant Information for Company Shareholders

LAKEWOOD, CO--(Marketwire - December 3, 2009) - Colorado Goldfields Inc. (OTCBB: CGFIA) announces today the commencement of a continuing series titled "Milling Dynamics in the News." This series is designed to be complementary to the Company's recently announced series "Gold Dynamics in the News." The two series together will provide relevant and complete information to our shareholders.

"Colorado Goldfields has a huge differential advantage because we own the only mill within several hundred miles, and have the capability to mill our own ore and pour doré right on our property. That makes combining news and events regarding gold with the latest developments in milling in an ongoing series uniquely applicable to our shareholders," said Stephen Guyer, CFO of Colorado Goldfields.

Simply stated, in obtaining gold from vein ore, the ore is first crushed in rod or ball mills, reducing the ore to a powdery substance from which the gold can be extracted by amalgamation with other elements or by placer procedures. About 70% is recovered at this point. The remainder is dissolved in dilute solutions of chemicals. The addition of metallic zinc to these solutions causes metallic gold to precipitate. This precipitate is refined by smelting. The purification is completed by electrolysis and the sludge produced will contain commercial quantities of silver, platinum, osmium, and other rare-earth metals.

While the basic process remains the same as at the turn of the 20th Century, new developments, especially in the geo-chemical area, continue to be discovered.

One of the primary sources of the latest expert information regarding advances in gold ore milling is M.D. Adams, of Mutis Liber Pty Ltd., Guildford, Australia, who recently served as editor for the contemporary publication, "Advances in Gold Ore Processing."

Dr. Adams stated, "The gold processing industry is experiencing change. As free-milling and oxide ores become depleted, more complex polymetallic and refractory ores are being processed, coupled with increasing pressure for stricter environmental compliance." These are issues and developments that the staff of Colorado Goldfields are constantly evaluating and considering as the Company moves closer to milling operations.

Last spring, the Company produced a video tour of its Pride of the West Mill. The video presentation may be viewed at http://www.cologold.com/uploads/2009-05-14_Mill.wmv.

"Developments in milling receive far less attention than events and predictions regarding gold. Ironically, gold can not be produced without the milling process. As a company that owns its own mill, we understand this far better than the majority of junior mining companies operating today," stated Lee Rice, President and CEO of Colorado Goldfields.

About Colorado Goldfields Inc.

Colorado Goldfields Inc. (OTCBB: CGFIA) (http://www.cologold.com) is a Denver-based junior exploration and mining company primarily exploring for gold and silver. Our seasoned management team targets historic gold camps with strong potential for multiple deposit discoveries. Currently, our business model in Colorado provides an outstanding combination of former producing properties with excellent exploration and production potential and a currently inactive, modern, up to 700 ton per day capacity mill facility to allow for an attractive short-term production time frame. We expect that this strategic plan will allow Colorado Goldfields to reach its goal of profitability, potentially within the next 18 months.

The Company has made available a current CGFIA Fact Sheet in PDF format at http://www.cologold.com/uploads/CGFIFactSheet.pdf.

Notice regarding forward-looking statements

This news release may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements or information includes statements regarding the expectations and beliefs of management. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to obtaining financing to meet the Company's exploration program and operating costs during its exploratory stage, the interpretation of exploration results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, or other unanticipated difficulties with or interruptions in production and operations, the potential for delays in exploration or development activities or the completion of feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including the inability to obtain mining permits and environmental regulatory restrictions and liability, the speculative nature of mineral exploration, dilution, competition, loss of key employees, and other risks and uncertainties, including those described under "Risk Factors" in the Company's Annual Report on Form 10-KSB filed on December 27, 2007, and as amended on March 3, 2008, which is on file with the Securities and Exchange Commission, as well as the Company's other SEC filings. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as is required under applicable securities laws.

Cautionary note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website (or press release), such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our 10-KSB which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml. This press release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

Contact Information